"Cabinet Approves ₹3,300-Crore Kaynes Semicon Facility in Sanand"

Recently, the Cabinet approved Kaynes Semicon Pvt Ltd’s proposal to establish a semiconductor manufacturing facility in Sanand, Gujarat, with an investment of ₹3,300 crore. The new plant will have a production capacity of 6 million chips per day.

The chips produced at this facility will support a variety of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones, according to a government statement.

The approval follows a recent halt in processing new semiconductor applications due to elections. The government is expected to approve additional projects soon, with new announcements anticipated at the upcoming Semicon India event, scheduled from September 11 to 13 and to be inaugurated by Prime Minister Narendra Modi.

The Indian government had launched a comprehensive semiconductor and display manufacturing program on December 21, 2021, with a total outlay of ₹76,000 crore. This initiative aims to build a robust semiconductor ecosystem in India. In June 2023, the Cabinet approved a proposal for another semiconductor unit in Sanand, Gujarat, and in February this year, three more units were given the green light. These include a semiconductor fab by Tata Electronics in Dholera, Gujarat, a unit in Morigaon, Assam, and another facility by CG Power in Sanand.

Construction of these four units is progressing rapidly, with a combined investment of approximately ₹1.5 lakh crore and a cumulative production capacity of around 70 million chips per day.

Ashwini Vaishnaw, Minister of IT, highlighted that India is developing a comprehensive semiconductor ecosystem under the India Semiconductor Mission. He assured that the country will continue to invest in this foundational sector to support industrial growth, including the expanding automobile and electronics manufacturing industries. Vaishnaw emphasized that the success of the 'Make-in-India' initiative relies on the growth of key industries like semiconductors.

HBL